Chinese automakers are racing to integrate cutting-edge technology into their vehicles. From autonomous driving to artificial intelligence-powered cabins, the modern vehicles are being transformed into “the ultimate smart terminals” that fuse advanced mobility, connectivity, and artificial intelligence (AI). The year 2025 is widely tipped to be the first year that smart driving becomes a key feature of cars in China, as the automotive industry enters an era of unprecedented competition in intelligent technology. Chen Qingtai, Chairman of the China EV 100, an auto industry think tank, said: “The pace of intelligent vehicle development in China has exceeded industry expectations. In the first half of 2024, the penetration rate of Level 2 (L2), plus advanced driver-assistance systems in new passenger vehicles surpassed 55%.” Level 2 means partial driver assistance. Level 3 means that drivers can afford not to pay attention in certain situations, while Level 4 means that vehicles can perform all driving tasks under specific circumstances, but human overrides are still an option.
“In the coming years, basic intelligent features will become universally adopted in newly sold passenger cars,” Chen said at the China EV 100 Forum 2025 which was held from March 28 to 30 in Beijing. Zhang Xiang, Secretary General of the International Intelligent Mobility Association, emphasized that advanced driver-assistance systems (ADAS) have become a critical differentiator for carmakers. “Chip computing power, AI-model-powered applications, and breakthroughs in urban/highway “navigate on autopilot” (NOA) are key metrics for competitiveness. Automakers mastering these technologies will dominate the market,” Zhang said. BYD Chairman Wang Chuanfu declared 2025 the “Year of Universal Smart Driving”, predicting that non-autonomous vehicles will soon become niche products. His words resonate across the industry. “The pace of automotive intelligence is accelerating, with transformative advancements expected to mature within two to three years. Concurrently, China’s new energy vehicles lead the global market by approximately three to five years in both technological innovation and industrial chain capabilities,” Wang said.
“It is critical to seize this strategic window, uphold open innovation, and leverage cutting-edge green technologies and products to propel higher-level international collaboration,” Wang said. By capitalizing on complementary strengths and fostering open cooperation, China’s automotive sector can achieve global success while driving sustainable growth, Well-aware of the opportunities ahead, Chinese companies, from Huawei to GAC Group, are pushing boundaries to seize first-mover advantages. Yu Chengdong, head of smart driving solutions at Huawei Technologies, said Huawei is ready for level 3 autonomous driving. “From passive to autonomous intelligence, cars are finally awakening,” he said.
The remark, seen as a veiled challenge to BYD, underscores the intensifying rivalry. Huawei’s smart driving solutions, already adopted by partners such as BAIC and JAC have positioned it as a leader. Yet competitors are closing in. BYD recently launched its DiPilot ADAS system, deploying it across 21 models priced between CNY70,000 and CNY200,000 – democratizing high-end autonomous features. This disrupts the market’s premium-only narrative, experts said. He Xiaopeng, chairman and CEO of Xpeng Motors, has applauded carmakers including BYD, saying that they are helping to popularize smart driving in China and across the world. Collaboration is accelerating. Changan Auto, Geely, Great Wall, BYD and other companies formed an alliance in February to co-develop autonomous technologies. The plan targets full-scenario level 3 autonomy by 2026 and level 4 capabilities by 2028. “This is about creating a ‘Chinese smart driving benchmark’,” said a Changan executive, speaking on condition of anonymity.
Vice Minister of Industry and Information Technology Xin Guobin said more efforts will be made to pursue breakthroughs in core technologies like autonomous driving and cross-regional application pilot schemes. Ouyang Minggao, Academician of the Chinese Academy of Sciences (CAS), said that level 4 autonomous driving, powered by advanced AI large language models (LLMs), will achieve commercial scale in mid-to-high-end vehicles by 2030. He forecasts annual NEV sales to exceed 16 million units in 2025 in China, entering a stable growth phase with annual growth rates moderating. But the total number of NEVs in China is expected to soar to 100 to 160 million by 2030. Zhang Yaqin, Academician of the Chinese Academy of Engineering (CAE) and Dean of Tsinghua University’s Institute for AI Industry Research, said unmanned driving will be the largest application for embodied AI in the next five years. Zhang highlighted how generative AI and large language models are accelerating level 4 autonomous driving by addressing challenges like data scarcity, long-tail scenarios, and commonsense reasoning. Zhang also predicted the “ChatGPT moment” for autonomous driving will arrive in 2025, with 10% of new vehicles achieving level 4 capabilities by 2030 – ushering in what he termed the “DeepSeek moment” for AI-driven mobility, the China Daily reports.
